IMI completes acquisition of STI Enterprises shares
INTEGRATED Micro-electronics, Inc. (IMI) has completed its acquisition of an 80% stake in a United Kingdom-based electronics manufacturer, paving the way for its expansion into the aerospace, security, and defense sectors.
In a disclosure to the stock exchange on Wednesday, the Ayala-led manufacturing solutions firm reported that it closed on Tuesday its acquisition of 100,000 ordinary shares of STI Enterprises Ltd. (STI) through its subsidiary, IMI UK Ltd., following the completion of all conditions and regulatory approvals for the deal.
The payment will be made in three tranches, IMI said, with an initial purchase consideration of £23 million handed at the closing of the transaction last May 16.
Subsequent payments will be made in 2018 and 2019, and will be based on earnings before interest, tax, depreciation, and amortization for those years less adjustments.
Last April 6, IMI UK entered into an agreement for the acquisition of a majority stake in STI, a provider of electronics design and manufacturing solutions in both printed circuit board assembly and full box-build manufacturing for high-reliability industries. The private company currently has factories in Hook and Poynton in the UK, as well as in Cebu.
“As part of IMI’s diversification and expansion strategy, the acquisition of STI will help strengthen its industrial and automotive manufacturing competencies, broaden its customer base, and will also provide access to the UK market through two acquired factories,” IMI said in its disclosure.
“Further, the partnership allows the group’s entry into the aerospace, security and defense sectors,” it added.
IMI booked a 33% increase in earnings to $8.7 million in the first quarter of 2017, on the back of strong revenues as it focused on its automotive and industrial businesses.
IMI shares closed at P9.65 each on Wednesday, adding 32 centavos or 3.43%. -- A.B. Francia